B Mirror Report: The move to grant digital bank licences in haste, just a day before the formation of a new government, has been halted following protests by the Bangladesh Bank Officers’ Welfare Council.
On Monday morning, the council demanded the suspension of a scheduled board meeting in protest of the initiative. Although a board meeting of Bangladesh Bank was held later in the day, no approval for digital banks was granted.
At the last moment, the meeting agenda was revised. Instead of approving licences, the board was informed about the scores obtained by applicant institutions seeking digital bank approval.
As a result, the process of issuing digital bank licences was effectively stalled amid the protests. The central bank experienced heightened tension throughout the day.
Following a morning press conference by the Officers’ Welfare Council, Bangladesh Bank issued an office order in the afternoon stating that no employee may make statements on banking or policy matters in personal or informal meetings, public gatherings, or press conferences without prior approval from the central bank.
When contacted, Bangladesh Bank spokesperson Arif Hossain Khan told the media that a progress report on digital bank applications had been presented at an emergency board meeting, but no decision was made.
At the press conference, council leaders said that after the 13th National Parliamentary Election held on February 12, and while the swearing-in of newly elected representatives and government formation was underway, an emergency board meeting was called on February 16 with just one day’s notice. They alleged that such an initiative could undermine the transparency and professionalism of the central bank.
They further claimed that the main objective of the meeting was to grant a digital bank licence to a specific group, raising widespread concerns. According to the council, the current governor had previously served as chairman of a bank belonging to that group, which they argued contradicts the fundamental principle of central bank neutrality.
The council also alleged that individuals lacking qualifications were appointed as advisers and policymakers due to their close ties with the governor. It termed as unprecedented irregularities the reported issuance of access cards and participation in key meetings by external individuals without board approval.
The council said that under the Bank Company Act, one bank cannot be a subsidiary of another, and government approval is mandatory for holding more than 10 percent shares. Taking such a major policy decision during the current political transition would violate both law and established norms, they argued, warning that it could create a monopolistic market in the banking sector and pose risks to financial stability.
According to the council, although the country currently has 61 scheduled banks and numerous financial institutions, the default loan rate has exceeded 36 percent as of September 2025. Many banks are struggling to return depositors’ funds. In this context, the necessity of new digital banks requires thorough and transparent evaluation.
The council demanded the immediate suspension of the controversial licensing process, cancellation of the February 16 emergency board meeting, a neutral investigation into conflicts of interest and favoritism, restoration of the central bank’s autonomy and professionalism, and, if necessary, leadership changes to rebuild confidence.
Speakers at the press conference included Council President AKM Masum Billah, General Secretary Golam Mostafa Srabon, and several senior central bank officials.
An emergency board meeting of Bangladesh Bank was held yesterday at noon, chaired by Governor Ahsan H. Mansur, where a progress report on digital bank applicants was presented.
Sources said that although the original agenda included approval of digital banks, it was changed shortly before the meeting. Officials were instead instructed to present documents detailing the scores obtained by each applicant. Several board members reportedly expressed dissatisfaction over convening an emergency meeting on the matter.
According to central bank data, 13 institutions have applied to establish digital banks, including British Bangla Digital Bank PLC; Digital Banking of Bhutan, backed by Bhutan’s DK Bank; Amar Digital Bank, sponsored by 22 microfinance institutions; 36 Digital Bank PLC, sponsored by 16 individuals; Boost, backed by Robi Axiata Limited; Amar Bank, sponsored by several private entities; App Bank, backed by UK-based expatriates; Nova Digital Bank, sponsored by Banglalink’s parent company VEON and Square; Maitree Digital Bank PLC, backed by microfinance institution ASA; Japan Bangla Digital Bank, sponsored by DBL Group; Munafa Islami Digital Bank, backed by Akij Resource; bKash Digital Bank, sponsored by bKash shareholders; and Upokari Digital Bank, backed by IT Solution Limited.
